One of the world’s largest investment banks, JPMorgan Chase, mentioned in a research note that the recent Bitcoin adoption by mutual life insurance company MassMutual indicates the potential for additional institutional demand. JPMorgan Chase predicted that there’d be a demand of around $600 billion for Bitcoin in the future. The bank outlined that if family offices, insurance companies, and pension funds decide to allocate a small percentage to cryptocurrencies, it will result in massive demand for bitcoin.
“Insurers and pension funds are facing regulatory hurdles to enter the crypto market.”
The research note drafted by strategists, including Nikolaos Panigirtzoglou, mentioned that insurers and pension funds are facing regulatory hurdles to enter the crypto market. The research note states that MassMutual’s Bitcoin purchases represent another milestone in institutional investors’ Bitcoin adoption. One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example, it added. The American banking giant expects financial services companies from the US, EU, Japan, and the UK to allocate at least 1% of assets in Bitcoin, with an expected Bitcoin demand of $0.6 trillion.
Bitcoin is expected to take advantage of massive outflows from Gold ETFs.
Panigirtzoglou further said that despite a skewed near term outlook of bitcoin, the long-term picture looks positive. He added that the leading cryptocurrency is expected to take advantage of massive outflows from Gold ETFs. “The bitcoin flow outlook for the medium to longer-term looks positive as we anticipate that the contrasting institutional flow picture over the last two months with inflows into the Grayscale Bitcoin Trust and outflows from Gold ETFs would become a structural trend. The adoption of the cryptocurrency by institutional investors has only begun,” the strategist added.